BillCam

HOUSE BILL No. 4010

January 11, 2017, Introduced by Rep. Lucido and referred to the Committee on Insurance.

A bill to amend 1949 PA 300, entitled

"Michigan vehicle code,"

by amending sections 227a, 255, 328, and 907 (MCL 257.227a,

257.255, 257.328, and 257.907), section 227a as added by 1995 PA

287, section 255 as amended by 2003 PA 9, section 328 as amended by

2015 PA 135, and section 907 as amended by 2015 PA 126.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 227a. (1) If a court has notified the secretary of state

of a vehicle registration number as provided in section 328(4)

328(5) and the owner has not secured proof that the vehicle

involved in the violation is currently insured under chapter 31 of

the insurance code of 1956, Act No. 218 of the Public Acts of 1956,

being sections 500.3101 to 500.3179 of the Michigan Compiled Laws,

1956 PA 218, MCL 500.3101 to 500.3179, the secretary of state shall

not renew, replace, or transfer the registration plate of the

vehicle involved in the violation or allow the purchase of a new

registration plate for the vehicle involved in the violation, until

the owner or the owner's representative appears at a branch office

and does both of the following:

(a) Shows a certified statement from an automobile insurer on

a standard form prescribed by the commissioner of insurance that

the vehicle involved in the violation is currently insured under a

prepaid noncancelable policy for a period of not less than 6 months

under chapter 31 of Act No. 218 of the Public Acts of 1956.the

insurance code of 1956, 1956 PA 218, MCL 500.3101 to 500.3179.

(b) Pays a fee of $50.00 in addition to any other fee required

by law, of which $25.00 shall be allocated to the secretary of

state to defray the costs of administering this section.

(2) The secretary of state may cancel the registration of a

motor vehicle under either of the following circumstances:

(a) The secretary of state receives notice that a court has

determined that a vehicle involved in the violation was not insured

as required by chapter 31 of Act No. 218 of the Public Acts of

1956, at the time of registration.

(b) The if the secretary of state receives notice that a court

has determined that the owner or the owner's representative

presented a certificate of insurance that was forged, altered,

fraudulent, or counterfeit when insurance was required by this act.

(3) Before a cancellation occurs under subsection (2), the

person who will be affected by the cancellation shall be given

notice and an opportunity to be heard.

Sec. 255. (1) Except as otherwise provided in this chapter and

in subsection (4), a person shall not operate, nor shall an owner

knowingly permit to be operated, upon any highway, a vehicle

required to be registered under this act unless there is attached

to and displayed on the vehicle, as required by this chapter, a

valid registration plate issued for the vehicle by the department

for the current registration year. A registration plate shall not

be required upon any wrecked or disabled vehicle, or vehicle

destined for repair or junking, which is being transported or drawn

upon a highway by a wrecker or a registered motor vehicle.

(2) Except as otherwise provided in this section, a person who

violates subsection (1) is responsible for a civil infraction.

However, if the vehicle is a commercial vehicle which is required

to be registered according to the schedule of elected gross vehicle

weights under section 801(1)(k), the person is guilty of a

misdemeanor punishable by imprisonment for not more than 90 days or

a fine of not more than $500.00, or both.

(3) A person who operates a vehicle licensed under the

international registration plan and does not have a valid

registration due to nonpayment of the apportioned fee is guilty of

a misdemeanor, punishable by imprisonment for not more than 90

days, or by a fine of not more than $100.00, or both. In addition,

a police officer may impound the vehicle until a valid registration

is obtained. If the vehicle is impounded, the towing and storage

costs of the vehicle, and the care or preservation of the load in

the vehicle shall be the owner's responsibility. Vehicles impounded

shall be subject to a lien in the amount of the apportioned fee and

any fine and costs incurred under this subsection, subject to a

valid lien of prior record. If the apportioned fee, fine, and costs

are not paid within 90 days after impoundment, then following a

hearing before the judge or magistrate who imposed the fine and

costs, the judge or magistrate shall certify the unpaid judgment to

the prosecuting attorney of the county in which the violation

occurred. The prosecuting attorney shall enforce the lien by

foreclosure sale in accordance with the procedure authorized by law

for chattel mortgage foreclosures.

(4) A person may operate a vehicle without having a valid

registration plate attached to and displayed on the vehicle if the

vehicle's registration plate was confiscated under section 328.

This subsection only applies for the 10-day period after the

confiscation described in section 328(3), and only while the person

is driving the vehicle to his or her residence from the location

where the registration plate was confiscated, or while the person

is driving the vehicle to the law enforcement agency to redeem his

or her registration plate as provided in section 328(3).

Sec. 328. (1) The owner of a motor vehicle who operates or

permits the operation of the motor vehicle upon the highways of

this state or the operator of the motor vehicle shall produce,

under subsection (2), upon the request of a police officer,

evidence that the motor vehicle is insured under chapter 31 of the

insurance code of 1956, 1956 PA 218, MCL 500.3101 to 500.3179.

Subject to section 907(15), an owner or operator of a motor vehicle

who fails to produce evidence of insurance upon request under this

subsection or who fails to have motor vehicle insurance for the

vehicle as required under chapter 31 of the insurance code of 1956,

1956 PA 218, MCL 500.3101 to 500.3179, is responsible for guilty of

a civil infraction. misdemeanor punishable by imprisonment for not

more than 1 year or a fine of not more than $500.00 for a first

offense, and a fine of not more than $1,000.00 for a second or

subsequent offense, or both. If a person displays an electronic

copy of his or her certificate of insurance using an electronic

device, the police officer shall only view the electronic copy of

the certificate of insurance and shall not manipulate the

electronic device to view any other information on the electronic

device. A person who displays an electronic copy of his or her

certificate of insurance using an electronic device as provided in

this subsection shall not be presumed to have consented to a search

of the electronic device. A police officer may require the person

to electronically forward the electronic copy of the certificate of

insurance to a specified location provided by the police officer.

The police officer may then view the electronic copy of the

certificate of insurance in a setting in which it is safe for the

officer to verify that the information contained in the electronic

copy of the certificate of insurance is valid and accurate. This

state, a law enforcement agency, or an employee of this state or a

law enforcement agency is not liable for damage to or loss of an

electronic device that occurs as a result of a police officer's

viewing an electronic copy of a certificate of insurance in the

manner provided in this section, regardless of whether the police

officer or the owner or operator of the vehicle was in possession

of the electronic device at the time the damage or loss occurred.

(2) A Unless a search of the law enforcement information

network shows that an automobile insurance policy is not in force

for a motor vehicle, a certificate of insurance, in paper or

electronic form and issued by an insurance company, that certifies

that the security that meets the requirements of sections 3101 and

3102 of the insurance code of 1956, 1956 PA 218, MCL 500.3101 and

500.3102, is in force is prima facie evidence that insurance is in

force for the motor vehicle described in the certificate of

insurance until the expiration date shown on the certificate. The

certificate, in addition to describing the motor vehicles for which

insurance is in effect, must, if applicable, state the name of each

person named on the policy, policy declaration, or a declaration

certificate whose operation of the vehicle would cause the

liability coverage of that insurance to become void.

(3) If, before the appearance date on a citation issued under

subsection (1), the defendant submits proof to the court that the

motor vehicle had insurance meeting the requirements of sections

3101 and 3102 of the insurance code of 1956, 1956 PA 218, MCL

500.3101 and 500.3102, at the time the violation of subsection (1)

occurred, all of the following apply:

(a) The court shall not assess a fine or costs.

(b) The court shall not forward an abstract of the court

record to the secretary of state.

shall be paid to the court funding unit.

(4) If an owner or operator of a motor vehicle is determined

to be responsible for a violation of subsection (1), the court in

which the civil infraction determination is entered may require the

person to surrender his or her operator's or chauffeur's license

unless proof that the vehicle has insurance meeting the

requirements of sections 3101 and 3102 of the insurance code of

1956, 1956 PA 218, MCL 500.3101 and 500.3102, is submitted to the

court. If the court requires the license to be surrendered, the

court shall order the secretary of state to suspend the person's

license. The court shall immediately destroy the license and shall

forward an abstract of the court record to the secretary of state

as required by section 732. Upon receipt of the abstract, the

secretary of state shall suspend the person's license beginning

with the date on which the person is determined to be responsible

for the civil infraction for a period of 30 days or until proof of

insurance meeting the requirements of sections 3101 and 3102 of the

insurance code of 1956, 1956 PA 218, MCL 500.3101 and 500.3102, is

submitted to the secretary of state, whichever occurs later. A

person who submits proof of insurance to the secretary of state

under this subsection shall pay a service fee of $25.00 to the

secretary of state. The person shall not be required to be examined

under section 320c and shall not be required to pay a replacement

license fee.

(3) If an owner or operator of a motor vehicle fails, upon

request of a police officer, to produce evidence that the motor

vehicle is insured under chapter 31 of the insurance code of 1956,

1956 PA 218, MCL 500.3101 to 500.3179, or if a search of the law

enforcement information network shows that an automobile insurance

policy is not in force for the motor vehicle, the police officer

shall do 1 of the following:

(a) For a first offense, immediately confiscate the motor

vehicle's registration plate and notify the secretary of state

through the law enforcement information network in a form

prescribed by the secretary of state that the registration plate

was confiscated. A registration plate that has been confiscated

under this subdivision shall be held for a period of 10 days after

the confiscation and, unless the owner of the motor vehicle

provides proof within that 10-day period that, as of the date the

proof is provided, he or she meets the requirements of section

227a, shall be destroyed. A police officer who destroys a

registration plate as provided in this subdivision shall notify the

secretary of state through the law enforcement information network

in a form prescribed by the secretary of state that the

registration plate was destroyed. A registration plate that was

confiscated and is being held under this subdivision shall be

returned to the owner of a motor vehicle if the owner of the motor

vehicle provides proof that he or she has met the requirements of

section 227a within the 10-day period described in this

subdivision.

(b) For a second or subsequent offense, immediately confiscate

the motor vehicle's registration plate, impound the motor vehicle,

and notify the secretary of state through the law enforcement

information network in a form prescribed by the secretary of state

that the registration plate was confiscated and that the motor

vehicle was impounded. A registration plate that has been

confiscated under this subdivision shall be held for a period of 10

days after the confiscation and, unless the owner of the motor

vehicle provides proof within that 10-day period that, as of the

date the proof is provided, he or she meets the requirements of

section 227a, shall be destroyed. A police officer who destroys a

registration plate as provided in this subdivision shall notify the

secretary of state through the law enforcement information network

in a form prescribed by the secretary of state that the

registration plate was destroyed. A registration plate that was

confiscated and is being held under this subdivision shall be

returned to the owner of a motor vehicle if the owner of the motor

vehicle provides proof that he or she has met the requirements of

section 227a within the 10-day period described in this

subdivision.

(4) The owner of a motor vehicle impounded under subsection

(3)(b) is liable for the expenses incurred in the removal and

storage of the motor vehicle whether or not it is returned to him

or her. The motor vehicle shall be returned to the owner only if

the owner presents a valid registration plate for that vehicle and

pays the expenses of removal and storage. If redemption is not made

or the vehicle is not returned as described under this subsection,

it shall be considered an abandoned vehicle and disposed of under

section 252a.

(5) If an owner or operator of a motor vehicle is determined

to be responsible for found guilty of a violation of subsection

(1), the court in which the civil infraction determination is

entered shall notify the secretary of state of the vehicle

registration number and the year and make of the motor vehicle

being operated at the time of the violation. A notification under

this subsection shall be made on the abstract or on in a form

format approved by the supreme court administrator and the

secretary of state. Upon receipt, the secretary of state shall

immediately enter this information in the records of the

department. The secretary of state shall not renew, transfer, or

replace the registration plate of the vehicle involved in the

violation or allow the purchase of a new registration plate for the

vehicle involved in the violation until the owner meets the

requirements of section 227a or unless the vehicle involved in the

violation is transferred or sold to a person other than the owner's

spouse, mother, father, sister, brother, or child.

(6) An owner or operator of a motor vehicle who knowingly

produces false evidence under this section is guilty of a

misdemeanor, punishable by imprisonment for not more than 1 year,

or a fine of not more than $1,000.00, or both.

(7) Points shall not be entered on a driver's record under

section 320a for a violation of this section.

(7) (8) This section does not apply to the owner or operator

of a motor vehicle that is registered in a state other than this

state or a foreign country or province.

Sec. 907. (1) A violation of this act, or a local ordinance

substantially corresponding to a provision of this act, that is

designated a civil infraction shall not be considered a lesser

included offense of a criminal offense.

(2) If a person is determined under sections 741 to 750 to be

responsible or responsible "with explanation" for a civil

infraction under this act or a local ordinance substantially

corresponding to a provision of this act, the judge or district

court magistrate may order the person to pay a civil fine of not

more than $100.00 and costs as provided in subsection (4). However,

if the civil infraction was a moving violation that resulted in an

at-fault collision with another vehicle, a person, or any other

object, the civil fine ordered under this section shall be

increased by $25.00 but the total civil fine shall not exceed

$100.00. However, for a violation of section 602b, the person shall

be ordered to pay costs as provided in subsection (4) and a civil

fine of $100.00 for a first offense and $200.00 for a second or

subsequent offense. For a violation of section 674(1)(s) or a local

ordinance substantially corresponding to section 674(1)(s), the

person shall be ordered to pay costs as provided in subsection (4)

and a civil fine of not less than $100.00 or more than $250.00. For

a violation of section 676c, the person shall be ordered to pay

costs as provided in subsection (4) and a civil fine of $1,000.00.

For a violation of section 328, the civil fine ordered under this

subsection shall be not more than $50.00. For a violation of

section 710d, the civil fine ordered under this subsection shall

not exceed $10.00, subject to subsection (12). For a violation of

section 710e, the civil fine and court costs ordered under this

subsection shall be $25.00. For a violation of section 682 or a

local ordinance substantially corresponding to section 682, the

person shall be ordered to pay costs as provided in subsection (4)

and a civil fine of not less than $100.00 or more than $500.00. For

a violation of section 240, the civil fine ordered under this

subsection shall be $15.00. For a violation of section 252a(1), the

civil fine ordered under this subsection shall be $50.00. For a

violation of section 676a(3), the civil fine ordered under this

section shall be not more than $10.00. For a first violation of

section 319f(1), the civil fine ordered under this section shall be

not less than $2,500.00 or more than $2,750.00; for a second or

subsequent violation, the civil fine shall be not less than

$5,000.00 or more than $5,500.00. For a violation of section

319g(1)(a), the civil fine ordered under this section shall be not

more than $10,000.00. For a violation of section 319g(1)(g), the

civil fine ordered under this section shall be not less than

$2,750.00 or more than $25,000.00. Permission may be granted for

payment of a civil fine and costs to be made within a specified

period of time or in specified installments, but unless permission

is included in the order or judgment, the civil fine and costs

shall be payable immediately.

(3) Except as provided in this subsection, if a person is

determined to be responsible or responsible "with explanation" for

a civil infraction under this act or a local ordinance

substantially corresponding to a provision of this act while

driving a commercial motor vehicle, he or she shall be ordered to

pay costs as provided in subsection (4) and a civil fine of not

more than $250.00.

(4) If a civil fine is ordered under subsection (2) or (3),

the judge or district court magistrate shall summarily tax and

determine the costs of the action, which are not limited to the

costs taxable in ordinary civil actions, and may include all

expenses, direct and indirect, to which the plaintiff has been put

in connection with the civil infraction, up to the entry of

judgment. Costs shall not be ordered in excess of $100.00. A civil

fine ordered under subsection (2) or (3) shall not be waived unless

costs ordered under this subsection are waived. Except as otherwise

provided by law, costs are payable to the general fund of the

plaintiff.

(5) In addition to a civil fine and costs ordered under

subsection (2) or (3) and subsection (4) and the justice system

assessment ordered under subsection (13), the judge or district

court magistrate may order the person to attend and complete a

program of treatment, education, or rehabilitation.

(6) A district court magistrate shall impose the sanctions

permitted under subsections (2), (3), and (5) only to the extent

expressly authorized by the chief judge or only judge of the

district court district.

(7) Each district of the district court and each municipal

court may establish a schedule of civil fines, costs, and

assessments to be imposed for civil infractions that occur within

the respective district or city. If a schedule is established, it

shall be prominently posted and readily available for public

inspection. A schedule need not include all violations that are

designated by law or ordinance as civil infractions. A schedule may

exclude cases on the basis of a defendant's prior record of civil

infractions or traffic offenses, or a combination of civil

infractions and traffic offenses.

(8) The state court administrator shall annually publish and

distribute to each district and court a recommended range of civil

fines and costs for first-time civil infractions. This

recommendation is not binding upon the courts having jurisdiction

over civil infractions but is intended to act as a normative guide

for judges and district court magistrates and a basis for public

evaluation of disparities in the imposition of civil fines and

costs throughout the state.

(9) If a person has received a civil infraction citation for

defective safety equipment on a vehicle under section 683, the

court shall waive a civil fine, costs, and assessments upon receipt

of certification by a law enforcement agency that repair of the

defective equipment was made before the appearance date on the

citation.

(10) A default in the payment of a civil fine or costs ordered

under subsection (2), (3), or (4) or a justice system assessment

ordered under subsection (13), or an installment of the fine,

costs, or assessment, may be collected by a means authorized for

the enforcement of a judgment under chapter 40 of the revised

judicature act of 1961, 1961 PA 236, MCL 600.4001 to 600.4065, or

under chapter 60 of the revised judicature act of 1961, 1961 PA

236, MCL 600.6001 to 600.6098.

(11) If a person fails to comply with an order or judgment

issued under this section within the time prescribed by the court,

the driver's license of that person shall be suspended under

section 321a until full compliance with that order or judgment

occurs. In addition to this suspension, the court may also proceed

under section 908.

(12) The court may waive any civil fine, cost, or assessment

against a person who received a civil infraction citation for a

violation of section 710d if the person, before the appearance date

on the citation, supplies the court with evidence of acquisition,

purchase, or rental of a child seating system meeting the

requirements of section 710d.

(13) In addition to any civil fines or costs ordered to be

paid under this section, the judge or district court magistrate

shall order the defendant to pay a justice system assessment of

$40.00 for each civil infraction determination, except for a

parking violation or a violation for which the total fine and costs

imposed are $10.00 or less. Upon payment of the assessment, the

clerk of the court shall transmit the assessment collected to the

state treasury to be deposited into the justice system fund created

in section 181 of the revised judicature act of 1961, 1961 PA 236,

MCL 600.181. An assessment levied under this subsection is not a

civil fine for purposes of section 909.

(14) If a person has received a citation for a violation of

section 223, the court shall waive any civil fine, costs, and

assessment, upon receipt of certification by a law enforcement

agency that the person, before the appearance date on the citation,

produced a valid registration certificate that was valid on the

date the violation of section 223 occurred.

(15) If a person has received a citation for a violation of

section 328(1) for failing to produce a certificate of insurance

under section 328(2), the court may waive the fee described in

section 328(3)(c) and shall waive any fine, costs, and any other

fee or assessment otherwise authorized under this act upon receipt

of verification by the court that the person, before the appearance

date on the citation, produced valid proof of insurance that was in

effect at the time the violation of section 328(1) occurred.

Insurance obtained subsequent to the time of the violation does not

make the person eligible for a waiver under this subsection.

(15) (16) If a person is determined to be responsible or

responsible "with explanation" for a civil infraction under this

act or a local ordinance substantially corresponding to a provision

of this act and the civil infraction arises out of the ownership or

operation of a commercial quadricycle, he or she shall be ordered

to pay costs as provided in subsection (4) and a civil fine of not

more than $500.00.

(16) (17) As used in this section, "moving violation" means an

act or omission prohibited under this act or a local ordinance

substantially corresponding to this act that involves the operation

of a motor vehicle and for which a fine may be assessed.

Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.

Enacting section 2. This amendatory act does not take effect

unless Senate Bill No. ____ or House Bill No. 4013 (request no.

01136'17) of the 99th Legislature is enacted into law.